Stored Value Card

Background

A Stored Value Card (SVC) is a smart card capable of storing electronic monetary value on the card’s embedded computer chip. In some cases, an SVC also contains a branded debit card feature to process retail transactions or allow the SVC holder to obtain cash at an automated teller machine (ATM) outside the closed environment of the SVC program. Federal agencies may issue SVCs capable of having value added on either a “reloadable” or “non-reloadable” basis. Once issued, Federal agencies and authorized cardholders may add value to reloadable cards via encrypted hardware devices assigned to an agency office or installation. As the SVC cardholder adds value to the card, or spends or transfers the value on the card via SVC hardware devices located at retailers or other SVC program locations, the SVC balance changes reflecting the amount spent or transferred to or from the card’s value.

The U.S. Department of the Treasury, typically in partnership with federal agencies such as the Department of Defense (DOD, provides SVC to agencies to disburse, transfer, and otherwise manage funds in a variety of closed environments. For example, the Departments of the Army and Air Force, and U.S. Marine Corps use the EZpay SVC to provide recruits at military training sites with a pay advance to purchase supplies and services required during military training at the merchant locations on base. The U.S. military uses EagleCash at bases around the world as the standard means for deployed soldiers, civilians, and contractors to facilitate the movement of funds to and from an SVC holder’s domestic bank account, convert foreign currency, or otherwise obtain needed funds. The Navy Cash card is used to replace coins and currency on-board ships, and, because it is a branded debit card it allows SVC holders to make purchases at merchants who accept the appropriate network(s) PIN-based branded debit cards or obtain cash from ATM’s.

Currently, SVCs replace cash and checks at 106 military bases and installations in 13 countries (including the U.S.), and on 146 Naval ships. Meeting this global demand necessitates the deployment of over 8,700 pieces of equipment, including kiosks (cashless ATMs), point-of-sale terminals, laptops, and other related peripherals.